A crafts manufacturer -- which has produced products such as beading for costume jewelry and scrapbooking and album kits that's been sold by Walmart and Jo-Ann Fabric and Craft Stores -- filed late last month for Chapter 11 bankruptcy protection, according to bankruptcy court documents.

Van Nuys-based Westrim Crafts filed for Chapter 11 April 29. "Significant losses in product placement due to changes in retailer strategy and increased competition resulted in a decline in revenue from about $125 million in 2005 to $30 million in 2010."

Westrim bought several craft companies between 2000 and 2006, including Blue Moon Beads, "with the intent of leveraging a common back office infrastructure (such as) warehousing, accounting, IT, HR to provide cost leverage and strengthen its relationships with key retail customers, including Michaels, Jo-Ann and Walmart," according to a bankruptcy court document.

But in May 2010, Westrim sold its scrapbooking, paper crafting, wall decor, craft storage and general crafts business to ANW Crestwood. The following month, Westrim marketed the assets of Blue Moon Beads, a move it hopes will pay all debts and return any remaining capital to shareholders once the sale is complete.

"In the absence of new capital or a sale ... debtor's business will be forced to close, permanently," according to a bankruptcy court document.

The business began in the early 1950s as a costumes and props design and supply business catering to the movie industry. Westrim then evolved into a basic crafts company in the 1960s and sold to independent hobby and sewing retailers, which were replaced by national chains, according to a bankruptcy court document.

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